Caltex to end pipeline contract with Citra Tubindo
Wednesday, May 16 2001 - 04:30 AM WIB
PT Caltex Pacific Indonesia (CPI) will terminate a contract to procure welded pipes from PT Citra Tubindo Tbk to comply with the anti-monopoly commission's recent ruling.
Caltex said that the contract which are worth about US$15.7 million a year would be formally ended in June.
Frankie Setiadi, a director of Citra Tubindo, said that the Batam-based company received a notification letter on the termination of the purchase agreement on May 4.
"The termination of the contract will take affect within 30 days from the issuing of the notification letter," he was quoted by DetikCom as saying.
He said that Citra Tubindo would continue to receive the payment for the welded pipes supplied to Caltex before the termination of the contract formally became affective.
According to Frankie, the termination of the contract would not end the chance for the company to join in CPI's future tender.
The antimonopoly commission ordered Caltex in April to terminate welded purchase contract with Citra Tubindo for violating the anti-monopoly law.
The commission said that CPI's tender procedure in procuring welded pipes had discriminated against small companies.
According to the commission, the tender procedure also allowed Citra Tubindo to collude with other tender participants in order to win the project. (*)